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Robertson traded in an old plant asset for a newer model that would be more productive and efficient. Data relative to the old and new
Robertson traded in an old plant asset for a newer model that would be more productive and efficient. Data relative to the old and new plant assets follow:
Old Plant Asset | |
Original cost | $10,000 |
Accumulated depreciation of | 7,000 |
Fair value | 2,000 |
New Plant Asset | |
List price | 13,000 |
Robertson paid $10,500 cash in the trade. What should be the cost of the new plant asset for financial accounting purposes?
A.$13,500
B. $12,500
C. $12,000
D. $13,000
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